Want to see TSE:RUS full AI Analyst Report?
Top Page
Russel Metals
(TSX:RUS)
Select Model
Select Model
Rating:74Outperform
Price Target:
C$91.00
â–²(28.71% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by a solid financial base (conservative leverage and healthy returns) and a very strong latest quarter/guidance tone from the earnings call (record revenue, margin improvement, and high ROIC). Technicals add support via strong trend and momentum, but overbought signals temper the near-term outlook. Valuation is only average for a cyclical business (P/E ~20.7) with a modest dividend yield (~2.14%).
Positive Factors
Strong revenue and shipment growth
Record revenue and shipment growth indicate broad customer demand across Russel Metals' industrial and construction markets. Sustained volume gains can improve fixed-cost absorption, strengthen purchasing scale and support earnings over the next several quarters.
Negative Factors
Cyclical margin normalization
Russel Metals remains profitable, but margins are well below peak-cycle levels, highlighting exposure to steel prices, spreads and inventory timing. If pricing or demand weakens, normalized margins could limit earnings growth even while revenue remains stable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and shipment growth
Record revenue and shipment growth indicate broad customer demand across Russel Metals' industrial and construction markets. Sustained volume gains can improve fixed-cost absorption, strengthen purchasing scale and support earnings over the next several quarters.
Read all positive factors
Russel Metals (RUS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.15B
Dividend Yield2.29%
Average Volume (3M)161.96K
Price to Earnings (P/E)19.3
Beta (1Y)1.03
Revenue Growth18.28%
EPS Growth35.28%
CountryCA
Employees4,275
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)3.91
Shares Outstanding54,900,000
10 Day Avg. Volume174,071
30 Day Avg. Volume161,958
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)1.55
Price to Sales (P/S)0.53
P/FCF Ratio19.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$80.29Price Target Upside13.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.75
Revenue Forecast (FY)C$6.12B
Russel Metals Business Overview & Revenue Model
Company Description
Russel Metals Inc. operates as a leading distributor of metal products across North America. The company's business activities are structured into three main divisions: Metals Service Centers, Energy Products, and Steel Distributors. The Metals Se...
How the Company Makes Money
Russel Metals makes money primarily by selling metal products (mainly steel) and related processing/services to business customers. Its revenue model is largely transaction-based: it purchases metals from mills and other producers, holds inventory...
Russel Metals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial quarter: record revenues, shipments, improved margins, significant adjusted EBITDA and EPS uplift, industry-leading ROIC, strong liquidity and disciplined capital allocation. Challenges were noted (Klockner's lower margin profile, inventory dollar growth, a one-time stock‑based compensation mark, modest working capital use, and potential timing risks if prices plateau). Overall, management's messaging emphasized durable demand, improving market breadth, and the ability to translate higher volumes and pricing into outsized earnings — with clear plans to narrow Klockner margin gaps and selectively deploy capital.Positive Updates
Record Quarterly Revenue
Consolidated revenues reached a quarterly record of $1.7 billion in Q2; revenues were up approximately 17% sequentially and about 37% year-over-year.
Negative Updates
Klockner Margin Dilution
Although Klockner is meaningfully additive to EBITDA, its margin profile lags the company's comparable operations by an estimated 300–400 basis points and remains margin-dilutive on a consolidated basis until further operational improvements and CapEx are realized.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Consolidated revenues reached a quarterly record of $1.7 billion in Q2; revenues were up approximately 17% sequentially and about 37% year-over-year.
Read all positive updates
Company Guidance
Management guided that Q3 2026 should be at least in line with the first half and, in fact, better than Q3 2025, noting July margins were similar to June (and June was above the Q2 average) and activity has continued into early Q3 despite normal seasonal headwinds. Key metrics cited supporting that outlook include record consolidated revenue of $1.7B and service‑center shipments above 500k tons (tons +6% vs Q1; same‑store +6% vs Q2 2025), a 130‑bp gross margin improvement Q2 vs Q1 with service‑center gross margin of $529/ton (+$71/ton vs Q1), Q2 adjusted EBITDA $154M (LTM EBITDA >$400M), EPS $1.43 (GAAP) / adjusted $1.63, ROIC 24% annualized (23% YTD), inventory turns 4.4 (from 4.2), Q2 CapEx $18M with expected pickup as annual CapEx averages ~ $100M (~$25M/quarter) into late‑2026/2027, liquidity >$500M with net debt ~$144M, quarterly dividend $0.44, $48M cash used for working capital in Q2, and continued NCIB activity (cumulative 8.7M shares for $333M at an average $38.13).Russel Metals Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.33B | 4.64B | 4.26B | 4.51B | 5.07B | 4.21B |
| Gross Profit | 978.80M | 1.01B | 889.90M | 956.50M | 1.13B | 1.21B |
| EBITDA | 406.80M | 340.60M | 315.50M | 428.20M | 580.40M | 657.90M |
| Net Income | 215.70M | 168.80M | 161.00M | 266.70M | 371.90M | 432.20M |
Balance Sheet | ||||||
| Total Assets | 3.09B | 2.68B | 2.35B | 2.57B | 2.51B | 2.31B |
| Cash, Cash Equivalents and Short-Term Investments | 154.00M | 114.60M | 45.60M | 629.20M | 363.00M | 133.10M |
| Total Debt | 482.00M | 483.70M | 196.80M | 422.50M | 422.90M | 404.30M |
| Total Liabilities | 1.36B | 1.10B | 688.30M | 930.20M | 947.60M | 1.07B |
| Stockholders Equity | 1.73B | 1.59B | 1.66B | 1.64B | 1.56B | 1.25B |
Cash Flow | ||||||
| Free Cash Flow | 189.90M | 125.10M | 253.70M | 389.00M | 318.40M | 275.70M |
| Operating Cash Flow | 255.10M | 199.50M | 343.90M | 461.70M | 359.90M | 304.50M |
| Investing Cash Flow | -148.90M | -200.50M | -417.70M | -5.30M | -6.50M | -107.20M |
| Financing Cash Flow | -169.60M | 78.20M | -537.90M | -184.90M | -139.10M | -93.50M |
Russel Metals Technical Analysis
Positive
70.70
Price Trends
68.09
Positive
61.51
Positive
53.03
Positive
Market Momentum
2.86
Positive
56.51
Neutral
8.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Positive. The current price of 70.7 is below the 20-day moving average (MA) of 74.36, above the 50-day MA of 68.09, and above the 200-day MA of 53.03, indicating a bullish trend. The MACD of 2.86 indicates Positive momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 8.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RUS.
Russel Metals Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$4.15B | 19.32 | 13.09% | 2.45% | 18.28% | 35.28% | |
70 Outperform | C$16.85B | 32.64 | 15.53% | 0.96% | 8.83% | 6.15% | |
64 Neutral | C$651.68M | 9.96 | 12.07% | 4.04% | -4.10% | 82.03% | |
63 Neutral | C$2.50B | 22.99 | 9.35% | 5.21% | 8.87% | -1.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$11.92B | 21.81 | 19.22% | 1.14% | 0.31% | 18.50% | |
60 Neutral | C$3.04B | -48.67 | -6.76% | 1.52% | 21.48% | -323.81% |
* Industrials Sector Average
TSE:RUS
Russel Metals
75.56
35.40
88.14%
TSE:ARE
Aecon Group Inc.
44.29
24.46
123.37%
TSE:FTT
Finning International
91.61
36.18
65.28%
TSE:MTL
Mullen Group
25.98
12.80
97.06%
TSE:TIH
Toromont Industries
206.63
64.99
45.88%
TSE:WJX
Wajax Corporation
30.09
7.68
34.30%
Russel Metals Corporate Events
Business Operations and StrategyStock Buyback
Russel Metals Renews Share Buyback Program After TSX Approval
Positive
Aug 14, 2026
Russel Metals Inc. has received Toronto Stock Exchange approval to renew its normal course issuer bid, allowing the company to repurchase for cancellation up to 5,446,896 common shares, or 10% of its public float, between August 18, 2026 and Augus...
Business Operations and StrategyFinancial Disclosures
Russel Metals Posts Record Q2 Revenue and Strong Profitability on Kloeckner Boost
Positive
Aug 6, 2026
Russel Metals reported record second-quarter 2026 revenues of $1.7 billion, driven by higher shipments and contributions from its Kloeckner acquisition, with adjusted EBITDA rising to $154 million and gross margins improving by 130 basis points co...
Business Operations and StrategyFinancial Disclosures
Russel Metals Posts Record Q2 Revenues and Strong Earnings Growth
Positive
Aug 6, 2026
Russel Metals reported record second-quarter 2026 revenues of $1.7 billion, with adjusted EBITDA rising to $154 million and gross margins improving by 130 basis points from the prior quarter. Net earnings climbed to $79 million, or $1.43 per share...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.